Dow at 10,517, up 55 points so far today.
NEW YORK (AP) — Stocks extended their rally into a third week
Monday as investors sent bank stocks higher following new global
regulatory requirements and China’s economy continued its robust
growth.
A round of corporate dealmaking also gave a lift to stocks.
Hewlett-Packard Co. said it will purchase security software
provider ArcSight Inc. Dollar Thrifty Automotive Group Inc. said it
accepted Hertz Global Holdings Inc.’s acquisition offer.
Acquisitions are often a sign that companies are confident the
economy is going to expand soon.
The Dow Jones industrial average rose nearly 43 points in afternoon
trading after paring early morning gains. If the Dow holds onto
gains Monday, it would be the eighth time in nine days that the
index has risen.
“The package of catalysts is a perfect backdrop for a market trying
to confirm global economic growth,” said Quincy Krosby, a market
strategist at Prudential Financial. Dealmaking and the expansion in
China further reduced worries about the economy falling back into
recession, Krosby said.
Stocks pulled off their highs Monday afternoon as investors pulled
money out of retail stocks ahead of the government’s monthly retail
sales report due out Tuesday.
Global regulators agreed to reforms that could help avoid another
credit crisis that plagued financial markets worldwide in 2008 and
early 2009. Banks will gradually have to increase their reserves to
protect against potential losses.
